Question

Microeconomics and macroeconomics are the two different perspectives on the economy. Microeconomic perspective focuses on parts while macroeconomic perspective focuses on the economy as a whole. Keeping this in mind, provide a clear description of the difference between microeconomics and macroeconomics. Provide at least ten differences with examples. 

Answer 1

Microeconomics study the economy from the viewpoint of individual firm, producers, consumers etc whereas macroeconomics look at the economy as a single unit.

	Micro Economics	Macro Economics
1	It helps in allocation of resources.	It helps in attaining a natural level of unemployment in the economy
2	It deals with individual consumer income.	It deals with nation income and general price level of goods.
3	It captures demand and supply of particular product	It captures demand and supply of whole economy.
4	It describes the equilibrium price level that prevails in the market	It helps in determining equilibrium employment level in the economy.
5	It main focus is to what, how and for whom to prduce.	Its main focus is to keep economy at its full potential
6	It analyze demand and supply of labor	It analyze unemployment prevailing from shortage of surplus of labor
7	It helps in doing a deep dive in the economy	It gives us a thorough brief of the economy.
8	It is narrow in scope	It is wide in scope
9	It takes a bottom up approach to understand the economy.	It take a top down approach to understand the structure of economy.
10	Example: Individual Saving / Consumption, price etc.	Example: National Saving, Inflation, Unemployment rate etc.